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However, building and running a profitable business is not easy. It is one thing to start a business, another thing to build it into a profitable business. Many types of research exist suggesting the high rate of business failures within the few years of its survival. Several factors account for business failures and in this post, I will be sharing with you 5 important questions you need to ask yourself as a small business owner to understand whether or not your business will survive its first few years?
Do You Have A Clear Understanding of your Business?
Having a clear understanding of your business goes beyond knowing those who are already doing it. This is what many do when starting a business, as soon as they become aware of those in a certain business and the volume of sales they are making, they jump into that business. But the survival of your business will require more than this shallow knowledge. You will need to know the problem your business seeks to solve, who you are targeting with your solutions and how the solutions could best be delivered to them.Do You Have A Clear and Viable Plan In Place?
Understanding the problem you wish to solve through your business is one thing, having a clear plan to do that is another. Having a clear and viable plan will help you know the strategies and approaches to implement towards running your business. There are three basic plans you need at the start of your business:- A Business Plan – This is the plan that provides a general overview of your business and the focus of your business.
- A Strategic Plan – A strategic plan will help you understand the set visions for your business, set goals, and develop a roadmap towards achieving them. It is best to have your strategic plan cover a given period, for instance, 3-year or 5-year. I strongly recommend you do not go beyond 5 years at a go.
- Marketing Plan – A marketing plan will help you clearly define the process of making your products/services known to your prospective customers and the channels through which you will reach out to them using your products. This will also be a part of your general business plan but just as I suggested in the case of a strategic plan, it will serve your business well to have one separate from the general business plan. A good marketing plan will be based on a well-researched marketing strategy.
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Do You Have Clear Structure In Place?
Just like in construction, a building needs structures to stand, your business also needs structures to grow. A business that will thrive has well-defined structures in place. The structure your business will need will be dependent on the business model you are running and whether or not you have active partners in the business.Do You Have A Capable Team
Every business needs people but more importantly, capable people. One of the challenges small businesses have is attracting quality manpower. This is because potential employees will always look to big companies for employment. Most businesses have solved this challenge in the time past by investing in their hires. Hiring and training could be a great strategy for your business.Do You Have The Capacity Needed To Lead Your Business?
The extent of growth of your business will depend on the extent of your growth as a leader. No matter how good your plan is and the structures you have in place, it takes you to lead your business effectively for it to grow. So, invest in your leadership and personal growth.Conclusion
The foundation you lay for your business will determine how long the business will survive or remain profitable. The foundation you lay for your business should be driven by the vision you have for the business. If you have a vision of a multi-million naira business, then you must do well to ensure you are laying a multi-million naira foundation for it. Featured Image Source: ForbesDid you find this article useful? Contact us: editor@connectnigeria.com